What I Am Buying Today.

[fenders53]

(02-23-2022, 03:35 PM)vbin Wrote: @fenders53 thoughts on XLU? Thinking to sell some of my utes which are still 20-50% up and just buy xlu. With interest rates going up utes should see some downward pressure?

We've never been at 0% before but the textbook answer is yes. When the RISK FREE rate heads towards 2% and beyond . A 3% yield from a highish PE stock doesn't look so good.  At some point early in the raise cycle it is highly likely utilities get a haircut.  FED telegraphed this long ago so I am at 50% of my normal UTE allocation.  You know I love them but IMO I'll get a chance to buy back at a better yield.  I could have just sold out but my basis in XEL is under $10.  It will be OK over time.  I am itching to buy some more WEC because they are going to keep beating earnings with their green lean but the time just isn't here yet.  IMO best way to hold UTEs now is sell a covered call and walk it down. At least you can score  5% annual yield while it plays out.  That is exactly what I have been doing with XEL and WEC for a long time now.  Wish I could just hold all my UTES at 100% but it's foolish to take a beating and miss the chance to buy lower in a tax advantaged account.